The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-11-10
Total

Total ......-........-. ell Is -
1t is possible that should Hawaiian
credit in London be good, these expenses
might be reduced somewhat.
The above figures were given me by
well-known firm in London before left.
(Signed) H. R. ARMSTRONG.
This estimate was accepted by the late
Ministry, and it was well understood that
these expenses would be necessarily in
Cured in floating the loan and establishing
a national credit in London. No miscon-
ception existed, but that these expenses
had no relation to the commission allowed
to the syndicate for the negotiation, as can
be seen from that letter. We can, how
ever, assure Your Excellency that such ex-
penses are not only customary, but con-
nected with nearly every foreign loan when
first made in this the great money center
of the world. Allow me to state few in
stances.
BuenOs Ayres per cent loan for Ed ,254,-
600 was issued at 81 per cent, commission
10 per cent, revenue security, harbor reve-
nues and railway revenues, specially hy-
pothecated, as well as the general reve-
nues of the country.
The first" Japanese loan brought out on
the London market was per cent one
for 60, 100000. The issue price was 92I
per cent; commission was ~ per cent,
and expenses 5 per cent. The whole loan
was not subscribed for.
China's first" loan of per cent, for f1,-
sos 900 was issued at SO per cent commits
sions ~ per cent. expenses 80 per cent,
but secured by special hypothecation of
their customs revenues, and a receiver ap-
pointed by the bondholders, with a pro-
vision in the Act that holders of the bonds
might pay them for customs duties. China
afterwards obtained a per cent loan at
same rate of issue.
Argentine Republic, Province of Cordova,
has recently foated per cent loan in
London at the issue price of 81 per cent
The Act, which is dated 18th June, this
year, authorizes a $1,000, 900 loan, and the
Government has issued in London, under
this authority 1856 POO sterling, stating in
the prospectus that the issue is part of an
authorized loan for 100000. The bonds
are free of taxes, and the Act and issue are
identical with the Hawaiian one. The rev.
enueS of the country and its internal
wealth is, however, much larger than ours.
and while our annual debt per capita is
about 81 so, theirs is but 81.
These quotations will show, that con-
sidering the extent of territory, amount of
population and situation of this Kingdom,
the loan has been placed in the London
market under singularly favorable condi-
tons
If you compare the aggregate amount
OF commissions, expenses, ETC., and net re-
suits of those loans with those of the loan
effected for the Hawaiian Islands, this be-
comes self-evident; and in attaining this
result it becomes evident also that much
more is due to the friendly efforts of our
coadjutors in London, than to the gain
and compensation which the negotiation
held out to the persons who undertook the
work.
1t may be asked: Were these expenses
necessary, and what benefit has the Ha-
waiIan Government obtained through this
expenditure for securing an official QUOTA
ton in the Lor on Stock Exchange for
Hawaiian national bonds? Anticipating
such question: I respectfully submit to
Your EXcellensy these propositions:
A loan cannot re foated in the London